Mercado Pago processes most payments outside Mercado Libre

Traditional banks are becoming obsolete. In Mexico, Mercado Pago already matches the reach of every incumbent bank combined. They are winning by intentionally taking massive risks on millions of unbanked people that traditional banks refuse to touch, fueling a $16 billion credit portfolio despite a 7% non-performing loan ratio. They are no longer just a checkout button; they are the new financial establishment. Is this aggressive lending a genius move or a disaster waiting to happen?
This summary was generated by AI